Tabcorp sees huge profit growth on marginal revenue growth due to strong cost control

Profit comes from a combination of revenue growth, tight cost control and the new retail commercial model

Australian betting giant Tabcorp saw revenue grow by 0.8 per cent to $2,636.3m over its 2026 financial year, with growth in both Wagering and Media and Integrity Services, with net profit after tax up 43.6 per cent.

Group operating expenses increased 0.5 per cent to $700.7m, reflecting inflation, partly offset by strong
cost control. Underlying operating expenses reduced by 0.8 per cent when compared to FY25, adjusting for the impact of the reformed Victorian Wagering and Betting Licence (Victorian Licence).

Domestic wagering revenue increased 0.9 per cent, reflecting improved trading conditions over the year, partially offset by below-average yields in 1H26. International wagering revenue decreased 3.7 per cent on FY25, due to softer trading in international markets, predominantly in Hong Kong, in the second half.

The combination of revenue growth, tight cost control and benefits from Phase 1 of the new retail
commercial model delivered EBITDA growth of 10.3 per cent to $431.7m and a 140bps improvement in
EBITDA margin to 16.4 per cent.

Tabcorp Managing Director & Chief Executive Officer Gillon McLachlan said: “Midway through our turnaround journey, we’re executing on the plan, continuing to exercise cost and capital discipline and the Company is delivering earnings growth. The new retail commercial model has been implemented, the National Tote will launch soon6, TAB LIVE and our new Next-Gen terminals are being rolled out in pubs and clubs in approved States, and we’ve renewed key domestic and global media rights partnerships.

“The first two stages of our transformation were to get fit and operationalise our game plan. We’ve
done that and we’re ready to enter the growth phase of our transformation. Our proposed
acquisition of BetMakers will accelerate our strategy, allowing us to release products faster and
more cheaply while using BetMakers’ complementary global assets to grow our international
revenue opportunities.

“Tabcorp is cooperating transparently with AUSTRAC during its ongoing investigation, at the same
time as continuing to uplift our financial crime maturity and capability. We remain on a journey of continuous improvement. We have a relentless focus on enterprise wide improvement every day and that will continue in FY27.”